Tariff hike: MultiChoice dares FG, Tribunal’s judgment, Senate
…Begins implementation of 15% price hike on DStv, GOtv subscriptions
By Ariemu Ogaga and Uthman Salami
More woes for Nigerians as a popular Paytv Operator, MultiChoice Nigeria has commenced the implementation of increased subscription tariff on GOTV and DSTV by 15 per cent.
The decision commenced despite Competition and Consumer Protection Tribunal’s judgment restraining it from price hike implementation.
Findings by Nigerian NewsDirect on DSTV and GOTV website as well as payment Apps revealed that MultiChoice Nigeria has applied on GOTV and DSTV subscription packages 15 per cent increment.
Nigerian NewsDirect gathered that DStv Premium is now N21,000, Compact Plus is N14,250, Compact is N9, 000, Confam (N5, 300), Yanga (N2, 950), Padi (N2, 150), Business(N2, 669), Xtraview PVR access fee (N2, 900).
While GOtv are as follows; GOtv Max is now N4,150, GOtv Jolli N2, 6669, GOtv Jinja N1, 900, GOtv Lite (N900), indicating 15 per cent tariff hike insensitive to the current economy challenges facing Nigerians and Nigeria.
In a statement signalling the price adjustment, MultiChoice said from April 1, subscribers will pay more for all its bouquets and its premium package on DSTV will cost N21,000, no longer N18,400.
Compact Plus which cost N12,400 before, will now go for N14,250, while Compact will cost N9,000 instead of N7,900.
Confam will cost N5,300 and no longer N4,615, while Yanga subscribers will pay N2,950 and not N2,565.
Whilst Gotv packages Max has increased from N3,600 to N4,150; Jolli, from 2,460 to N2,800; Jinja, from 1,640 to N1,900; Lite from N800 to N900 respectively.
The firm attributed the price adjustment to, “rising costs of inflation and business operations” for the increase which also affects GOTV packages.
When our correspondent contacted the Executive Head, Corporate Affairs, MultiChoice Nigeria, Caroline Oghuma, she promised to get back to our correspondent. However, as at the time of filing this report, Ogbuma did not get back to Nigerian NewsDirect on the matter.
On the other hand, Director of Public Affairs, Nigerian Communications Commission (NCC), Dr Ikechukwu Adinde did not reply the message sent to him by our Correspondents.
FG needs to step-up enforcement of Consumers’ protection laws to protect exploitation — Muda
While speaking to our Correspondent on the development, an economist, the Chief Executive Officer (CEO), Centre for the Promotion of Private Enterprise (CPPE) and Former Director General, Lagos Chambers of Commerce and Industry (LCCI), Dr Muda Yusuf said the Federal Government should step-up its enforcement of consumers’ protection laws to guard against exploitation.
According to him, “We need to strengthen the effectiveness and enforcement of our consumer protection and competition laws.
“Federal Competition and Consumer Protection Commission (FCCPC) needs to step up in the discharge of its responsibilities.
“The need for regulatory effectiveness is even more imperative in monopolistic settings. Monopolists generally have an exploitative disposition.
“The most effective way to protect consumers is to ensure a free and competitive market in all sectors, as much as possible. But where it is impossible to enthrone a competitive environment, the vigilance of the competition commission must be strong.
“However, the paramount objective is to protect consumers from exploitation, not necessarily to fix prices. All of these must be in accordance with the law,” he stated.
Earlier, the Competition and Consumer Protection Tribunal sitting in Abuja on Friday had restrained MultiChoice Nigeria Limited from increasing its tariff and cost of products and services scheduled to begin today.
The three-member tribunal, presided over by Thomas Okosun, gave the order following an ex-parte motion by Festus Onifade, a legal practitioner, on behalf of himself and the Coalition of Nigeria Consumers.
Other members of the tribunal were Sola Salako Ajulo and Ibrahim EL-Yakubu.
In the suit marked: CCPT/OP/1/2022, MultiChoice and Federal Competition and Consumer Protection Commission (FCCPC) are first and second respondents.
The motion ex-parte filed by the applicants on March 29 was brought pursuant to Section 39 (1) & (2) of FCCPC Act 2018; Order 26, Rule 5 (2), (3) & 26, Rule 6 (1) & (2) of the Federal High Court (Civil Procedure) Rules 2019 and Section 47(a), (b), (c), (d) of the FCCPC Act 2018.
The applicants had prayed for “an order of interim injunction restraining the first defendant/respondent, either by itself, agents, representatives, officers or privies, howsoever described, from carrying out the impending increase in tariff and cost of its products and services intended to take effect from April 1, 2022, until the hearing and determination of the motion on notice already filed before this tribunal.
“An order of the honourable tribunal mandating the 1st defendant/respondent to maintain status quo pending the hearing and determination of the motion on notice.
“And for such further order or other orders as this honourable tribunal may deem fit to make in the circumstance.”
In the ruling, the tribunal ordered MultiChoice to stop the planned hike in tariff and cost of its products and services pending the hearing and determination of the motion.
It went on, “The first defendant/respondent is hereby restrained, either by itself, agents, representatives, officers or privies, howsoever described, from carrying out the impending increase in tariff and cost of its products and services intended to take effect from April 1, 2022 until the hearing and determination of the motion on notice already filed before this honourable tribunal.
“The first defendant/respondent is hereby mandated to maintain status quo pending the hearing and determination of the motion on notice.”
The matter was, thereafter, adjourned till April 11 for hearing and determination of the motion on notice.
“All parties in this suit are to appear before this honourable tribunal on the 11th day of April, 2022,” it ruled.
In a move to stop MultiChoice’s tariff hike implementation, the Senate on Wednesday constituted a seven-man ad-hoc committee to carry out a comprehensive investigation into the tariff hike by DStv (MultiChoice Nigeria) with a view to bringing pricing in line with international practice.
This was even as the upper legislative chamber had directed all pay-tv service providers to immediately review their bouquet prices downwards in tandem with the prevailing reality of the economic situation in Nigeria.
The Senate President, Dr. Ahmad Lawan had announced the composition of the ad-hoc committee, after consideration of a motion titled, “Nigerians dumbfounded, outraged over Pay-Tv Tariff Hikes, demand for Pay-Per-View subscription model,” sponsored by Senator Patrick Abba Moro (PDP Benue South) during plenary.
Lawan appointed the Deputy Whip, Senator Aliyu Sabi Abdullahi (APC Niger North), to chair the ad-hoc committee and Senators Sulaiman Abdu Kwari (APC Kaduna North), Oluremi Tinubu (APC Lagos Central), Yusuf A. Yusuf (Taraba Central), Lekan Mustapha (APC Ogun East), Chukwuka Utazi (PDP Enugu South) and Akon Eyakenyi (PDP Akwa-Ibom South) as members.
The resolutions followed a motion by Senator Patrick Abba Moro (Benue South).
Senator Moro noted with concern the uproar within the public over tariff hikes, and price increases by Pay-tv service providers on their bouquets.
